Economic Restructuring and ‘Racial Stigma’ in Detroit and Beyond Supplemental Lecture Material EC 1370: Race and Inequality in US Prof. G. Loury, 2/9/10

Summary of Thomas Sugrue’s Argument:

4. Please note the role of systematic, coordinated campaigns of racial violence in sustaining the racial geography of mid-20 th century Detroit. (recall Lansberry’s play, “A Raisin in the Sun”)

5. 6.

(Los Angeles in the 1990s)

Neighborhood Racial Composition Preferences

Social Capital in a Diverse Society: Ethnic Diversity Seems to Undermine Social Trust in American Cities Drawn from the work of Robert D. Putnam Harvard University

Race and Class-based spatial segregation are deeply embedded in the structure of American cities. Here’s some further evidence on this:

Residential Segregation in Manhattan: Income vs. Race

Geographic Distribution of Incarceration, New York City, 1985 and 1996

On the Logic of Racial Stereotypes and the Self-fulfilling Prophecy: A simple economic model EC 1370, 2/9/10

= employer’s estimate of likelihood that a worker with “unclear” test has invested Note in this formula that s exceeds 2/3 if and only if Π exceeds ½.

NOTICE THAT IN THE ‘PESSIMISTIC’ EQUILIBRIUM ONLY 1/9 OF THE WORKERS END-UP GETTING HIRED, WHILE IN THE ‘OPTIMISTIC’ EQUILIBRIUM FULLY 7/9 OF THE WORKERS ARE HIRED!!